< The 2015 All-America Research Team
Donald Fandetti
Citi
First-place appearances: 0
Total appearances: 5
Analyst debut: 2011
Citi researcher Donald Fandetti marks his fifth appearance on this lineup with his strongest showing to date, rising from runner-up to third place. “He has excellent industry contacts, a high level of industry knowledge and a good feel for the stocks,” one fan proclaims. Fandetti maintains that, in general, the fundamentals for America’s consumers and its credit card industry are healthy, with “credit pretty rock solid across the board and card loan growth that could see a modest increase.” However, he warns of “a risk of rotation into stocks like banks that are more interest rate affected. We think there’s a significant amount of investor interest in terms of positioning for that. Now, that doesn’t mean the card stocks can’t work — it’s just more of a relative performance.” Capital One Financial Corp. of McLean, Virginia, should be among the most competitive on that front, he believes. The bank holding company is taking market share in card lending and buying back a lot of stock, he notes. Further, it is positioned to take advantage of potential portfolio acquisition opportunities, and its valuation is attractive versus the regional banks’. Capital One has “come out of the financial crisis a clear winner, in terms of market share and capital position,” he concludes. Fandetti, 47, joined Citi in February 2005 and worked previously as an equity analyst at Wachovia Capital Markets, covering such financial real estate stocks as mortgages and real estate investment trusts. He holds two degrees from South Carolina’s Clemson University, a bachelor’s in accounting and a master’s in business administration.